Recently, SIGMA and ADEN University, organized the second legal-economic forum in Panama in which we discussed the EMMA Law and all the aspects that represent the challenges and opportunities of this law that was designed to promote the manufacturing industry and the country’s logistics hub. .
This event, held at the ADEN University headquarters in Torres de las Americas, was attended by Cecilio Castillero, Partner of the SIGMA law firm; by Edgar Urrutia, General Manager of Alliance Transport Logistics and Omar Castillo, legal advisor to the Ministry of Commerce and Industries of Panama.
Among the most important aspects that were discussed was the reason for the creation of this Law which, in Castillo’s words, was born from Panama’s need to continue attracting investment to the country and to continue being a competitive country, considering the optimization of the supply chain during the pandemic and the objective of providing legal security for new investments.
A multinational company under an EMMA license can carry out the following operations of manufacturing, remanufacturing, assembly, conditioning, packaging, product deployment, distribution and storage center, research, product development and innovation, laboratory analysis and testing.
EMMA Law Benefits
To comply with the premise of promoting investment in the country, the EMMA law has a package of important benefits that allows companies to develop within the sectors, having in the regulatory framework an ally that facilitates investment.
For example, as the main benefit it allows a 5% reduction in the rate payable for income tax.
Regarding the transfer tax (ITBMS), they will not be incurred as long as they are provided to entities of the business group abroad and do not generate taxable income within Panama.
In addition, EMMA foreign employees, so called because they belong to a company licensed by law, will be exempt from paying income taxes, social security and education taxes.
The multinational company with EMMA license will be exempt from the payment of dividends and complementary taxes and branch taxes and will not be subject to the use of tax equipment.
Companies under an EMMA license will not be required to obtain a Notice of Operation, therefore, they will not have to pay the taxes for the license fee for the Notice of Operation.
Regarding work permits, foreign technical employees and their dependents will have special work visas.
How to apply for an EMMA license?
The Ministry of Commerce and Industry designated the office of the Multinational Corporation Headquarters, which is also known as the Technical Secretariat, as the place where the service is provided for the application for the EMMA license and visas for workers. and their dependents.
In this sense, every license applicant must write a letter to the Technical Secretariat Committee expressing their interest and attaching the license application form, public registry of the company in Panama, notarized power of granting to the lawyer representing the company. applicant, consolidated financial statement of the business group and the organizational chart.
The dissemination of legal-economic topics that generate knowledge for the promotion and development of the country is one of the objectives of the agreement signed between SIGMA and ADEN University, so we will continue to generate events like this one that serve as a platform for debate in favor of that the country continues to position itself as an investment center and logistics hub in America.
